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Occupations and Professions | |
Utah Construction Trades Licensing Act | |
Section 306 | Financial responsibility. |
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58-55-306. Financial responsibility. (1) An applicant for licensure as a contractor, and a licensee applying for renewal or reinstatement of a contractor's license shall demonstrate to the division and the commission the applicant's or licensee's financial responsibility before the issuance of or the renewal or reinstatement of a license by: (a) (i) completing a questionnaire developed by the division; and (ii) signing the questionnaire, certifying that the information provided is true and accurate; or (b) submitting a bond in an amount and form determined by the commission with the concurrence of the director. (2) The division may audit an applicant's or licensee's demonstration of financial responsibility on a random basis or upon finding of a reasonable need. (3) The burden to demonstrate financial responsibility is upon the applicant or licensee. (4) (a) If an applicant for licensure as a contractor or a licensee applying for renewal or reinstatement of a contractor's license is an unincorporated entity, the division may require each individual who holds an ownership interest in the applicant or licensee to demonstrate financial responsibility to the division and the commission. (b) In accordance with Subsection (2), the division may audit an owner's demonstration of financial responsibility under Subsection (4)(a) at any time including requesting: (i) the applicant or licensee to provide a current list of owners meeting the requirements of Subsection 58-55-302(1)(e)(iv); and (ii) a credit report for each owner. (c) If an owner described in Subsection (4)(a) fails to demonstrate financial responsibility under this section, the division may: (i) prohibit the licensee from engaging in a construction trade; or (ii) require the applicant or licensee to submit a bond in an amount and form determined by the commission with the concurrence of the director.
Amended by Chapter 413, 2011 General Session |
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